Changing Patterns of Alcohol Consumption in Rural China

This paper applies a demand model to examine alcohol consumption in rural China. Its objective is to investigate alcohol consumption patterns and their determinants in rural households. The empirical analysis is based on survey data of 1,000 rural households located in twenty counties within five provinces of China. The main issues considered include the effects of household income and demographic characteristics such as age, education, household size, location and occupation, on alcohol consumption.

This study is the first of its kind and has important policy implications. In particular this study can shed light on the future demand for grain in China. Alcohol production is one of the major industrial users of grain. Changes in alcohol consumption patterns can directly affect the demand for grain in the future. It is an issue of great strategic significance for both China and the rest of the world